Overview
Title
Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company
Agencies
ELI5 AI
The Federal Reserve System is checking if certain people from the Fishback family can get more shares in a bank in South Dakota, and anyone who wants to say something about it needs to do so before January 25, 2021.
Summary AI
The Federal Reserve System is reviewing applications under the Change in Bank Control Act to allow certain individuals to acquire shares in a bank or bank holding company. These applications involve members of the Fishback family and related trusts looking to retain or increase their shares in Fishback Financial Corporation and, by extension, First Bank & Trust in Brookings, South Dakota. Public comments about these applications must be submitted by January 25, 2021. Interested parties can view these applications at specified Federal Reserve Banks or contact the Board of Governors for more information.
Keywords AI
Sources
AnalysisAI
The document presented is a notice from the Federal Reserve System regarding applications under the Change in Bank Control Act. It details an application process by certain individuals and trusts associated with the Fishback family to acquire or retain shares in Fishback Financial Corporation and its subsidiary, First Bank & Trust, located in Brookings, South Dakota. This document invites public comment on these applications, to be submitted by January 25, 2021.
General Summary
The proceeding involves the Fishback family and associated trusts who wish to maintain or potentially increase their ownership in a financial institution. The Federal Reserve, as part of its regulatory oversight, reviews such applications to ensure compliance with pertinent laws and regulations. The document highlights available avenues for public inspection of these applications and encourages written comments to be submitted by a specified deadline.
Significant Issues or Concerns
Several concerns arise from the document:
Resource Allocation: There is an implicit question about whether the review of these applications demands excessive resources. The outlined processes seem standard, but a closer examination may reveal inefficiencies or areas of potential improvement.
Potential Bias: The notice identifies only the Rivlin Trusts and their associations, without mentioning other potential applicants. This might create a perception of favoritism unless a comprehensive disclosure of all similar applications is available.
Complex Language: Legal and financial jargon such as "retain voting shares" or "group acting in concert" can be challenging for individuals not familiar with such terms. The document's language may alienate those without specialized knowledge, making public engagement more difficult.
Public Participation: Although the document invites public comment, it does not elucidate the significance or potential impact of these comments on the decision-making process, which may discourage public participation.
Impact on the Public and Stakeholders
Broad Impact on the Public: The decision to allow the Fishback family to maintain or increase its shares in a bank holding company could impact the local and broader communities through potential changes in how the institution operates or invests locally. However, without clearer participation guidelines, the public might not fully comprehend how their input could influence outcomes.
Impact on Stakeholders:
Fishback Family and Associated Trusts: A positive outcome for the applicants would allow this group to retain or enhance their control and potentially influence over the financial and strategic decisions of the bank.
Other Possible Applicants: If similar details are not disclosed for other applicants, it could be perceived as unequal transparency, putting other stakeholders at a disadvantage if their actions face greater scrutiny or less public exposure.
Regulatory Bodies: This document serves as part of regulatory compliance, showcasing transparency in processes involving significant changes in bank control. However, the complexity of the language used might impede true public engagement, which is essential for fair regulatory practices.
Overall, the notice illuminates the regulatory steps involved in significant financial transactions and control changes, yet it also highlights areas where communication and public engagement processes could be improved for greater clarity and inclusivity.
Issues
• The document does not provide information about spending that might be wasteful, but there should be consideration about whether reviewing applications requires any excessive resources.
• There could be perceived bias as the document specifically mentions the Rivlin Trusts retaining shares, potentially favoring this group over others if similar details of other applicants are not disclosed.
• The language regarding various trusts (e.g., 'Ann Fishback Rivlin, Madison, Wisconsin, individually and as trustee of...') might be confusing due to the dense listing of entities and trusts without clear separation.
• The document includes legal and financial jargon (e.g., 'retain voting shares', 'group acting in concert') that might be challenging for a layperson to understand without additional context or definitions.
• The deadline for submitting comments (January 25, 2021) is mentioned, but without explanation of the consequence or importance of public comments in the decision-making process, it may not be clear how public opinion is valued.